The US dollar has gained over the course of the early afternoon as Fed Chairman Bernanke supported the introduction of another fiscal stimulus package this year. Such a move would raise speculation that the proactive efforts by the US over the past year leaves them in a better position compared to regions like the Euro-zone and UK.

The Euro fell to 1.3850 before finding support as the U.S.Senate approved the bailout plan. Profit taking has pushed the EURUSD back above 1.3900 despite easing inflation. Prices at the factory gate slowed to 8.5% from an 18 year high of 9.2% on declining oil prices.

Japan's central bank said Tuesday it had expanded the scope of its agreement with the U.S. Federal Reserve, allowing it to provide more cash to financial institutions to keep money markets operating smoothly.

Stocks plummeted to five-year lows on Thursday on the eve of a G7 meeting of economic powers to try to halt a global spiral of financial distress and slowing growth.

USD/CHF Ratio: -1.64 Trading Forecast: Bullish

Cable has yet to break its low. "The continued decline in Cable makes the decline from 1.8675 in 7 waves, which is a double zigzag correction. The GBPUSD is in the exact same position as the EURUSD; a flat or triangle is probably underway.

The Mother of all regular forex related announcements, the Non Farm Payroll is set for release on Friday. Although it might take second place to news from the macro economic front, forex traders will still be closely watching for signs of the U.S. economic health.

The US Senate vote on the Treasury bailout of financial markets has done little to pacify volatility in forex markets, and currencies remain primed for major moves ahead of tomorrow?s key US Non Farm Payrolls report.

U.S. Non-farm payrolls are expected to fall another 105K in September, which would be the ninth consecutive monthly decline this year.

Wall Street opened higher on the first relatively calm Monday in a month amid signs banks were lending to each other again, an indication of hope the world's financial crisis may be easing.

AUD/NZD is our Trend for Today

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Sales at retail stores recorded their biggest monthly drop in more than three years in September while a measure of inflation eased, according to government data on Wednesday that intensified recession fears.

The USDCAD drop from 1.2132 has held short term trendline support. A closer look at the decline reveals that it is an impulse though and that the line will most likely be broken.

The US dollar has rallied versus most of the major currencies since last night on the Senate's approval of the Treasury's bailout bill, helping to raise speculation that it will ultimately pass a House vote as well on Friday.

The flat and triangle counts remain preferred. One warning that the USD may begin to weaken in general is the fact that the EURUSD broke its recent low while the GBPUSD and USDCHF have failed to break their respective price extremes.

The euro slid below $1.40 on Thursday after a lopsided U.S. Senate vote revived the planned $700 billion financial industry bailout.

Key lending rates between banks in the U.S. and Europe continued to fall slowly on Tuesday in response to combined pledges from governments to inject money into banks and guarantee their debt.

On the monthly charts, USD/CHF has broken above trendline resistance which served as former support in 1995 and 2004. Meanwhile, long-term monthly oscillators including RSI and MACD turning bullish.

The National Bureau of Economic Research has confirmed that the US entered recession in December 2007, as US GDP fell 0.2% during Q4 2007. While GDP actually rose during Q1 and Q2 2008 by 0.9% and 2.8%, respectively, and then subsequently dropped 0.5% in Q3 2008, the NBER does not judge a recession to be 2 consecutive quarters of negative GDP.